Minnesota
Incentives/Policies for Renewables & Efficiency
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Last DSIRE Review: 09/13/2009
| Incentive Type: |
State Rebate Program |
| State: |
Minnesota |
| Eligible Renewable/Other Technologies: |
Photovoltaics
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| Applicable Sectors: |
Commercial,
Residential,
Multi-Family Residential,
(Small businesses only for commercial)
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| Incentive Amount: | $1.75/watt DC
$2.00/watt DC for installations made by an NABCEP-certified installer |
| Maximum Incentive: | Based on maximum system size;
Residential: $8,750 or $10,000 (NABCEP-certified installer)
Small business: $17,500 or $20,000 (NABCEP-certified installer) |
| Eligible System Size: | 0.5 kW minimum; no specified maximum size |
| Equipment Requirements: | Systems must be new, UL-listed, in compliance with all applicable performance and safety standards; Inverters must carry a minimum 2-year warranty with the option to extend to 5 years; PV panels must carry a 20-year warranty. |
| Installation Requirements: | Installation must comply with all federal, state and local codes; grid-connected or off-grid systems eligible; systems must be installed by a licensed, qualified professional; installations must comply with detailed siting criteria specified in program guidelines. |
| Program Budget: | $400,000 (currently available July 2009);
$2.75 million (expected total with pending Federal ARRA funds) |
| Ownership of Renewable Energy Credits: | Not specified |
| Funding Source: | Xcel Energy's Renewable Development Fund (public benefit fund); Federal ARRA funding expected pending future approval |
| Expiration Date | When funds are exhausted |
| Project Review/Certification | Office of Energy Security (OES) may conduct site audits; Project owners must provide MN OES with generation data for 4 years either through annual inverter or separate meter readings. |
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Web Site: |
http://www.state.mn.us/
portal/mn/jsp/content.do?subchannel=-536895046&programid=536917313&sc3=null&sc2=null&id=-536893809&agency=Energy
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| Date Effective: | 2002 |
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Summary:
Note: The first $400,000 of funding made available in July 2009 has now been fully reserved; however, the Minnesota Office of Energy Security (OES) continues to accept applications in anticipation of the availability of additional funds from the Federal economic stimulus package.
The Minnesota Office of Energy Security (OES) administers a solar-electric (PV) rebate program, funded in part by Xcel Energy, to buy down the up-front costs of solar-electric (PV) systems. The program is currently available only to Minnesota residents and small businesses that have 20 or fewer full-time equivalent employees. All systems must be installed within the state to qualify for a rebate. Only primary residences are eligible for residential applications, although applicants do not need to be the primary resident in order to qualify (i.e., apartments or rental properties are eligible if at least one tenant occupies the property as a primary resident). Past solar electric rebate participants are not eligible for further rebates under the current guidelines. In addition, prospective applicants should be aware that the OES has set a cumulative incentive cap for all rebate programs of $10,000 per residence and $25,000 per small business. The programs included under this cap are the PV program describer here, and the upcoming solar water heating, solar air heating, small wind, and ground-source heat pump programs.
Both grid-connected and off-grid systems are eligible for assistance under this program. Through December 31, 2009 the base incentive is $1.75/watt DC for systems installed by a licensed electrical contractor or general contractor having at least two installations of 0.5 kW or larger in the previous 12 months. Systems installed by a NABCEP-certified installer that also meets the criteria above are eligible for a rebate of $2.00/watt DC. Systems installed by contractors that do not meet the criteria above are not eligible for incentives. Although the program is anticipated to continue through 2010, rebate levels for later periods have not yet been determined.
Residential systems are eligible for incentives up to a capacity of 5 kilowatts (kW) while small businesses are eligible for incentives up to 10 kW. Larger systems are eligible for incentives, but rebates will be based on the above system size limits. Participants must submit an application form to reserve a rebate before performing any installation work. The rebate reservation application contains a detailed list of equipment and installation requirements which must be met in order to qualify for incentives. After receiving confirmation from the OES, participants have nine months to install proposed systems and obtain approval by electric-utility officials (required) and local code officials (if necessary). In September 2004, the Minnesota Department of Commerce issued a two-page publication, Electricity from the Sun - A Minnesota Solar Energy Primer, for consumers interested in the state's solar rebate program.
A total of $400,000 is currently available for the program although program managers anticipate a total budget of $2.75 million pending the approval of additional funding from the 2009 Federal economic stimulus package (ARRA). The rebate cannot be used in combination with other Xcel Renewable Development Fund support. Those who do not qualify under the current program guidelines (e.g., industrial, governmental, non-profits, etc.) are encouraged to contact the OES about other funding opportunities.
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Contact:
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Energy Information Center
Minnesota Department of Commerce
Office of Energy Security
85 7th Place East, Suite 500
St. Paul, MN 55101-2198
Phone: (651) 296-5175
Phone 2: (800) 657-3710
Fax: (651) 297-7891
E-Mail: energy.info@state.mn.us
Web Site: http://www.energy.mn.gov/
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Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
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